GOT MILK? New $40 Million Cass City Dairy Plant to Boost Area Processing

December 26, 2013       Leave a Comment
By: Dave Rogers

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A long-anticipated dairy plant in Michigan's Thumb that aims to boost ag power is under construction and planned for a fall opening.

The Dairy Farmers of America (DFA) ingredient processing facility in Cass City will serve a region where milk production is steadily outpacing local plant capacity, officials said.

The $40 million new dairy plant being built in Cass City will provide 25 to 30 direct jobs and become a strong community partner, says Jamie Clover Adams, director of the Michigan Department of Agriculture and Development.

"This is a big deal for Tuscola County and a big deal for the state," Senator Mike Green told tuscolatoday.com. "We had almost no dairy farms left -- now there's a big one north of Caro and they're starting to expand some more around here. "That was coming, and I think the DFA realized that."

Green said the plant that will save transportation costs for farmers injects dollars directly back into the local economy and allows farmers to expand their businesses.

According to DFA, the facility's operating system will deliver superior taste, protein functionality and yields, with reduced operating costs and a smaller physical footprint than alternative systems. Reflecting the Cooperative's focus on sustainability, the plant is designed to recover and re-use water in plant cleanup operations.

Adams said the new DFA plant gives added optimism to the vision she and Governor Rick Snyder share for building the agriculture industry in Michigan.

"This is important for the city, the region and the state, and will help in meeting our goals of increasing the impact of food and agriculture in Michigan," she said.

The ag director said Michigan's dairy industry is the largest contributor to the state's $91.4 billion agri-food industry and ranks 8th in milk production in the United States producing 4.4 percent of the nation's milk.

At completion next fall, the 33,000-square-foot plant will process up to 3 million pounds of fresh milk each day, which will be supplied by Dairy Farmers of America (DFA) member farms in the Michigan Thumb area.

"This plant will provide a local home for our members' milk, answering the growing need for Michigan plant capacity while building a base for value-added processing in the future," said Mark Korsmeyer, executive vice president of DFA. "Furthermore, the project is consistent with DFA's strategic plan, creating supply chain efficiencies and increasing commercial investments to bring increased value to our farmer owners."

Numerous partner agencies contributed substantial support to the plant. The Michigan Strategic Fund (MSF) approved a $500,000 Michigan Business Development Program grant and a $1 million Community Development Block Grant, while the Michigan Economic Development Corporation is contributing $300,000 in corporate funds. MSF also awarded Tuscola County and Cass City a new 15-year Agriculture Processing Renaissance Zone designation for the project.

The Village of Cass City also offered support by providing revenue bonding valued at approximately $6.7 million for a wastewater pretreatment system and public infrastructure improvements.

In addition to creating at least 25-30 full-time positions at the facility, increased employment opportunities are expected to occur on member farms and in agriculture support industries.

"This new plant underscores the growth and continued expansion opportunities for Michigan's food and agriculture companies," said Adams. "The plant will not only increase our dairy processing capabilities in the state, but it will also create jobs and support the Thumb region."

Initially, the plant will produce condensed whole and skim milk, as well as cream. A phased construction plan will allow for growth among current and future DFA members, and the potential to manufacture value-added demand products.

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Dave Rogers
Dave Rogers is a former editorial writer for the Bay City Times and a widely read, respected journalist/writer in and around Bay City. (Contact Dave Via Email at carraroe@aol.com) More from Dave Rogers

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